Equity release is often used to enhance lifestyle
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A 'horror story' - or maybe not? - seems quite appropriate around the ever-increasing popularity of Halloween.
Digressing already - is it a reflection on society that this almost seems more popular than Christmas now?
We certainly saw more 'trick or treaters' than carol singers on recent Christmas times!
Moving on, the horror story relates to an inquiry where I suggested equity release as an option to help one of his family on to the housing ladder, using the release to help create a 'door opening' deposit - no pun intended.
The horror reaction was something along the lines of 'no, don’t want to touch one of them' which, after a bit of discussion, was due to a friend whose inheritance had been diminished by his parents’ utilising an equity release some years previous without his knowledge.
This is something I have come across previously and can indeed come as a surprise.
The discussion then typically follows the line of why the release was needed and how did it get to whatever value?
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Equity release no longer carries the stigma it once did when it was perhaps seen as the last chance financial saloon, in resolving unpayable debts or other financial issues and for a parent to admit this to their offspring was almost an admission of failure and embarrassment.
There are also cases where a parent may also say well they're doing alright anyway!
Times have changed and in many cases the release is used to enhance lifestyle by choice rather than necessity particularly in the wake of Covid!
With the post Gordon Brown era of rock-bottom interest rates, many of the current schemes may still be carrying rates of six or seven per cent so the accrual rate is a lot steeper than the current offerings – time to look at a rebroke!
Another factor could well be that further advances have also been taken over the years, adding to what might well appear to a relatively small initial amount and the real tale behind our Halloween horror story!
If this sounds familiar or some form of release or discussion might be useful please just ask. Call Kevin Watling, mortgage, protection and equity release specialist at Molyneux Associates on 01803 659592/500306 or email email@example.com